This portfolio project delves into financial ratio analysis, evaluating the performance of companies using various metrics. It begins with an analysis of key financial ratios like current ratio, quick ratio, net profit margin, gearing ratio, P/E ratio, earnings per share, ROCE, average inventories turnover period, and dividend pay-out ratio for M&S and Next Plc. The project provides detailed analyses of each ratio, explaining their significance and implications for a company's financial health and performance. Furthermore, it explores investment appraisal techniques and their limitations in long-term decision-making. The document also provides recommendations for improving financial performance, such as revenue expansion, cost reduction, and economies of scale. Finally, it discusses the limitations of relying solely on financial ratios for interpreting company performance, emphasizing the need to consider other factors.
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